Emerging Markets for District Cooling
DISTRICT ENERGY IN CITIES
A GLOBAL INITIATIVE TO UNLOCK THE POTENTIAL OF ENERGY EFFICIENCY AND RENEWABLE ENERGY
Zhuolun Chen, C2E2 and Celia Martinez, UN Environment
Supported by:
Ministry of Foreign
Affairs of Denmark
DANIDA
DHC Days, February 21 and 22, Lyon
CHINA
BASELINE SCENARIO:
NATIONAL OBJECTIVES:
 Increase the efficiency of the
network.
 Reduce 20% the use of nonfossil fuels by 2030.
 Reduce 20% of PM2,5 by 2020.
 Biggest energy consumer in the world
 15% annual growth of surfaces connected to DHC
 80% of northern urban surfaces connected to a DH network
in 2010.
 54% of the DH networks use coal as primary energy source
 Low efficiency boilers and lack of high quality filters to
control emissions
WHAT ARE WE GOING TO DO…
 Analyse the DHC market and policies in place.
 Identify the required policy framework to promote the
transition towards cleaner networks using waste heat
recovery and renewable energy.
 Capacity building of local authorities to develop long term
local energy strategies
CHINA: CHAMPION DISTRICT
HEATING/COOLING DEVELOPER
DISTRICT COOLING
 Fast growing since 2010, DHC
and DC for higher quality of
comfort
 CBDs of high economic level
cities in Middle and South
China (mainly capital cities)
 Service area: 1,5-3 sq. km
 >25 DC/DHC projects operating,
> 35 projects constructing, >30
projects developing
DISTRICT HEATING
Fastest growing market in the world
 Boilers and CHPs in near equal amounts
 4.5% of national energy consumption (2014)
Half of all major cities in Middle and North China
have district heating
 Industrial waste heat close to cities
CCHP OF HENGQIN, ZHUHAI CHINA
Located in HengQing Island, South China of Zhuhai 1st phase includes: 390MW (9F) power plant, 4
sub-station for cooling
Cover an area of 106 sq. km, 20 million sq. m of
commercial buildings
Began to supply electricity on Nov., 2014
Providing electric power, hot water and cooling
Began to supply cooling (4/14℃) and hot
water(65/45℃) on Aug. 2016
CCHP OF HENGQIN, ZHUHAI CHINA
5-star hotels
City
Complex
Office
buildings
CCHP OF HENGQIN, ZHUHAI CHINA
 1st phase of the CCHP includes a 390MW of power plant with natural gas, 4 sub-stations of cooling
and hot water
 According to the construction plans of the end-users, the construction of sub-stations and even each
sub-station itself is also divided into different phase. These divisions of phases make the whole
system more cost effective and it's possible to improve efficiency with new technologies for later
phases.
CCHP OF HENGQIN, ZHUHAI CHINA
WHY IS DISTRICT ENERGY
IMPORTANT IN INDIA?
 India to require 83GW of additional power
capacity from 2016 to 2022
Delhi Summer and Winter Electricity Demand Profile
 Estimated proportion of electricity demand in
Initiative’s assessed cities: 25%-40%
 Contribution to peak load: 30% - 45%;
- In Delhi, cooling is 40% -60% of peak electricity
 Cooling demand in India is projected by the IEA
to grow 18 times by 2050
 Commercial demand for electricity to increase
50% nationally from 2016 to 2022
 Huge potential to reduce grid stress and
capacity additions and reduce CO2 and
refrigerant emissions
Source: IEA and Lawrence Berkeley National Laboratory, 2015
HIGH OPPORTUNITY FOR DISTRICT
COOLING: FIVE CITIES
BHOPAL
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8.7 KM2 OF NEW COMMERCIAL
DEVELOPMENT BY 2031
2.6 KM2 OF NEW INDUSTRIAL
DEVELOPMENT BY 2031
200 BANKS AND INSURANCE
COMPANIES
100 HOSPITALS
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COIMBATORE
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5 PROPOSED SPECIAL ECONOMIC
ZONES
7 UNIVERSITIES
750 HOSPITALS
IT PARKS IN PLANNING
RAJKOT
22nd FASTEST GROWING CITY
GLOBALLY
POPULATION TO DOUBLE BY
2031
500 FOUNDRY UNITS PRODUCING
WASTE HEAT


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





THANE
FAST GROWING IT AND RETAIL
SECTOR
HOTTEST CLIMATE OF THE FIVE
CITIES
LARGE TOWNSHIPS AND IT
PARKS PLANNED
PUNE
IT HUB: 35 IT PARKS & 9
UNIVERSITIES
TOP 6 CITIES FOR RETAIL
ESTATE MARKET
16 SPECIAL ECONOMIC ZONES
25 NEW TOWNSHIPS
1 MILLION M2 OF MALL
5.5 MILLION M2 OF OFFICE
OTHER MARKETS
China
Morocco
India
Colombia
Malaysia
THE KIGALI AGREEMENT
HFCs are primarily used in air
conditioning
Amendment to the Montreal protocol including a
phase down of HFC emissions:
 HFCs to be reduced from 2019
 China, Brazil and all of Africa, will
freeze the use of HFCs by 2024.
 Remaining countries freeze HFCs use
by 2028.
District cooling an efficient
alternative
Paris reduced 90% its HFC emissions
thanks to the DC network
ICLEI
ENGAGEMENT OPPORTUNITIES
• Co-leaders of DES Initiative Capacity Building Task Force
• Global activities (contact: ICLEI, [email protected])
• Peer-review of guidance materials
• Solutions & Packages with “how to” guidance:
• Retrofitting of existing district heating systems
• Cogeneration and trigeneration
• Coming soon: 100% renewable district energy
• Training materials
• Decision trees
• Checklists
• Webinars and training delivery
• Next session:
April 2017 - Business models and financial structuring
• City partnerships and relationship building
• Let us know your interests, we can facilitate contacts
• In-country (contact: UN Environment, C2E2, ICLEI)
PROCESS GUIDANCE
AVAILABLE ONLINE
www.solutions-gateway.org
• Join the initiative
• Register and login to gain
full access to the
Solutions on district
energy available online
Integrating District Energy into
energy and urban planning
Starting District Heating /Cooling
in already developed areas
Urban infill development
THANK YOU!
For more information on the Global District Energy in Cities Initiative, please visit the website
or contact:
 Ms. Celia Martinez, Technical Expert, District
Energy in Cities Initiative, UN Environment
[email protected]
 Mr. Zhuolun Chen, Senior Expert, District Energy
in Cities Initiative, DTU-UN Environment
Partnership [email protected]
ICLEI – Local Governments for
Sustainability
World Secretariat, Bonn, Germany
Maryke van Staden, Director of the carbonn
Center
Ana Marques, Senior officer, Low-carbon Cities
[email protected]
www.iclei.org
http://carbonn.org
www.solutions-gateway.org
 Ms. Lily Riahi, Advisor on Sustainable Energy in
Cities, Energy, Climate, and Technology Branch,
Economy Division, UN Environment
[email protected]
http://www.districtenergyinitiative.org/